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China Eastern introduces basic economy fare
July 12th 2019
Intra-Asia flights now have a fare option that excludes checked bags, changes or online check-in. Read More »
China Eastern Airlines (CEA) is taking one of the biggest steps into the branded fare and merchandising platform among Asian full-service airlines by selling “basic economy” tickets. Yet the airline’s rationale for the strategy is unclear.
Basic economy fares have shown up on China Eastern’s website but do not appear on popular online travel agency Trip.com. The fares are available on intra-Asia regional and international flights, but not domestic sectors. The tickets exclude checked bags and do not permit any changes or cancellation, even for a fee. Seats are assigned at check-in, which is only permitted at the airport and not online. Upgrades are not possible. Basic economy passengers board last, but once onboard receive the same service as other passengers including a meal.
The new basic economy fare does not appear to show dynamic pricing or inventory control. A spot check showed all Singapore and Bangkok flights from Shanghai had basic economy for RMB400 (US$58) cheaper one-way despite Singapore being further away from the Chinese city than Bangkok. Screenshots earlier in July posted on the blog One Mile At A Time showed the difference ranged from US$24-$30 one-way for Shanghai-Singapore. All Hong Kong flights have basic economy for US$26 less.
Advance seat assignment is not offered, even for a fee. CEA’s website had unclear statements about purchasing checked luggage after buying a basic economy ticket.
Rather than unbundle its product as European airlines have done, CEA has followed the basic economy model of U.S. airlines, including Delta Air Lines, which has invested in the Shanghai-headquartered carrier and advised it on strategic matters. While American Airlines, Delta and United Airlines have similar basic economy offerings, American and United offer advance seat selection for a fee. Delta does not and neither does China Eastern.
